L201 Exam 3 McCrory 130+ Questions
With 100% Correct Solutions.
Agency - Answertwo-party relationship on which one party (the agent) has the power
to act on the behalf, and under control, of the other party (the principal)
Agents do not need a contract - AnswerTrue
Gratuitous Agent - Answeris an agent that works for free
Subagent - Answeragent of an agent
Agents ability - Answeranything the principal can do legally, their agent can do for
them (it's like the principal did it themselves)
Who can be an agent? - AnswerAnyone
Who can be a principal? - AnswerA person must have contractual capacity to be a
principal. (18 or older and legally sane)
Favors= - AnswerAgency (getting milk at store for your mom, you were an agent for
her)
agents obligations to the principal - Answerbeing a Fiduciary
All agents are - AnswerFiduciaries
Fiduciary - Answeracts in the best interest of the principal, even at their own detriment
MDM vs. CX case - AnswerMDM claimed CX owned a fiduciary obligation to them,
however, a principal does not owe any fiduciary responsibility to their agent
Agent's Duties to the Principal (Loyalty) 1 - AnswerCannot seize business
opportunities from principal (but you can take it if the p says you can)
Agent's duties to the principal (Loyalty) 2 - AnswerCannot sell your own things to your
principal, because then you benefit on behalf of them
Agent's duties to the principal (Loyalty) 3 - AnswerCannot compete with the principal-
can't help your p's competitors, you cannot buy things for yourself if your p desires it
(need to sign non-compete clause)
, Agent's duties to the principal (Loyalty) 4 - AnswerNo appearance of impropriety
Agent's duties to the principal (Loyalty) 5 - AnswerNo conflicts of interest- dual
agency-can't compete. etc
Agent's duties to the principal (Loyalty) 6 - AnswerDual agency (can't work for both
mcdonalds and wendy's and if you do you have to let them know (unless you're a
middle-man)
Agent's duties to the principal (Loyalty) 7 - AnswerNo secret profits- cannot take profit
that truly belongs to the principal
Agent's duties to the principal (Loyalty) 8 - AnswerCannot divulge trade secrets or
confidential info for your own benefit (krabby patty formula)
Agent's duties to principal (Obey Instructions) - Answeragent must obey all
instructions from principal, unless it is illegal/unethical
Agent's duties to the principal (act with care and skill) - Answeragent must act with
care, competence, and skill when doing things for principal
Agent's duties to the principal (account/keep record) - Answeragent must keep track
of payments, funds, property so p can have them if they demand it later
Agent's duties to the principal (Provide info) - Answeragent needs to provide info to p
that is necessary
Agents must not - AnswerCommingle and embezzle
Non-compete clause - Answerprohibits a person from working in a competing
business for a specific period of time after leaving
Middle-man - Answerbringing two principals together (a connector, NOT an agent)
Commingling - AnswerIllegally mixing deposits or monies, collected from a client, with
one's personal or business account.
embezzlement - Answerunlawful taking of property by someone to whom it was
entrusted
CBS vs. FCC case - Answer
Principals duties to agent 1 - AnswerDuty to compensate (pay them for their work),
unless it is a gratuitous agent
With 100% Correct Solutions.
Agency - Answertwo-party relationship on which one party (the agent) has the power
to act on the behalf, and under control, of the other party (the principal)
Agents do not need a contract - AnswerTrue
Gratuitous Agent - Answeris an agent that works for free
Subagent - Answeragent of an agent
Agents ability - Answeranything the principal can do legally, their agent can do for
them (it's like the principal did it themselves)
Who can be an agent? - AnswerAnyone
Who can be a principal? - AnswerA person must have contractual capacity to be a
principal. (18 or older and legally sane)
Favors= - AnswerAgency (getting milk at store for your mom, you were an agent for
her)
agents obligations to the principal - Answerbeing a Fiduciary
All agents are - AnswerFiduciaries
Fiduciary - Answeracts in the best interest of the principal, even at their own detriment
MDM vs. CX case - AnswerMDM claimed CX owned a fiduciary obligation to them,
however, a principal does not owe any fiduciary responsibility to their agent
Agent's Duties to the Principal (Loyalty) 1 - AnswerCannot seize business
opportunities from principal (but you can take it if the p says you can)
Agent's duties to the principal (Loyalty) 2 - AnswerCannot sell your own things to your
principal, because then you benefit on behalf of them
Agent's duties to the principal (Loyalty) 3 - AnswerCannot compete with the principal-
can't help your p's competitors, you cannot buy things for yourself if your p desires it
(need to sign non-compete clause)
, Agent's duties to the principal (Loyalty) 4 - AnswerNo appearance of impropriety
Agent's duties to the principal (Loyalty) 5 - AnswerNo conflicts of interest- dual
agency-can't compete. etc
Agent's duties to the principal (Loyalty) 6 - AnswerDual agency (can't work for both
mcdonalds and wendy's and if you do you have to let them know (unless you're a
middle-man)
Agent's duties to the principal (Loyalty) 7 - AnswerNo secret profits- cannot take profit
that truly belongs to the principal
Agent's duties to the principal (Loyalty) 8 - AnswerCannot divulge trade secrets or
confidential info for your own benefit (krabby patty formula)
Agent's duties to principal (Obey Instructions) - Answeragent must obey all
instructions from principal, unless it is illegal/unethical
Agent's duties to the principal (act with care and skill) - Answeragent must act with
care, competence, and skill when doing things for principal
Agent's duties to the principal (account/keep record) - Answeragent must keep track
of payments, funds, property so p can have them if they demand it later
Agent's duties to the principal (Provide info) - Answeragent needs to provide info to p
that is necessary
Agents must not - AnswerCommingle and embezzle
Non-compete clause - Answerprohibits a person from working in a competing
business for a specific period of time after leaving
Middle-man - Answerbringing two principals together (a connector, NOT an agent)
Commingling - AnswerIllegally mixing deposits or monies, collected from a client, with
one's personal or business account.
embezzlement - Answerunlawful taking of property by someone to whom it was
entrusted
CBS vs. FCC case - Answer
Principals duties to agent 1 - AnswerDuty to compensate (pay them for their work),
unless it is a gratuitous agent
